Third-quarter earnings season opened on October 13, 2026, when JPMorgan Chase, Goldman Sachs, Citigroup and Wells Fargo all reported before the market opened. The results were not uniform. Trading desks and investment banking delivered strong year-over-year gains at several firms, yet a closely watched earnings miss at the largest U.S. bank and cautious comments about interest rates left the picture mixed. For investors following the financial sector, the reports offer a useful look at which revenue lines are carrying earnings and which risks management teams are flagging.
Why These Reports Mattered
The reports arrived against an unusual backdrop for banks. According to a Capital.com preview, the 10-year Treasury yield had reached its highest level since 2002, closing the prior Friday at 5.24%, while the KBW Nasdaq Bank Index had fallen 9.7% over the previous month even as the S&P 500 gained about 1.5%. That preview noted that rising yields can reduce the market value of banks’ fixed-rate securities and may push depositors toward higher-yielding alternatives, while also supporting lending margins over time.
With the sector lagging the broader market, the quarter’s results were an early test of whether earnings strength could offset valuation worries.
Goldman Sachs: Equities Lead the Way
Goldman Sachs reported net revenue of $18.68 billion and net income of $5.29 billion, up 29% from a year earlier, with earnings per share of $17.01 that beat estimates. Equities trading revenue rose 72% to $6.44 billion, although that was below the record $7.42 billion posted in the second quarter. Investment banking fees climbed 21% to $3.22 billion.
Fixed income, currencies and commodities revenue was the soft spot. It slipped 1% to $3.47 billion and missed forecasts as credit, mortgage and interest-rate trading weakened. Net interest income fell 2% to $3.77 billion, as interest expense grew faster than interest income.
Chief Financial Officer Denis Coleman said demand for equity financing continues to exceed the industry’s available capacity, which supports favorable pricing, and described the investment banking backlog as substantial. Chief Executive David Solomon cautioned that greater interest-rate volatility could affect the economics of AI-related projects.
JPMorgan: A Rare Miss at the Largest Bank
JPMorgan Chase reported revenue of $50.17 billion, up 8%, and net income of $15.3 billion, compared with $14.4 billion a year earlier. Earnings per share of $5.57 fell short of consensus in what was described as a rare miss. Equities trading revenue rose 49%, driven by prime brokerage and derivatives, while fixed-income trading revenue fell 4% to $5.4 billion. Investment banking fees rose 14%.
Net interest income was about $27.1 billion, up 13%. Management raised its 2026 net interest income outlook to $106.2 billion and offered a preliminary 2027 outlook of about $107 billion. Share repurchases were only $664 million, down from more than $6 billion in the prior three months, and the bank cited about $30 billion in excess capital.
Chief Executive Jamie Dimon said a rise in rates from 5% to 6% would pressure borrowers more than a rise from 4% to 5%, and called further rate increases a significant risk. He also said the bank is tightening lending standards because of weaker loan covenants, more payment-in-kind interest and more aggressive financing structures. Chief Financial Officer Jeremy Barnum, by contrast, said underlying consumer spending remained strong, including after gasoline costs, with limited evidence of material consumer credit deterioration.
Citigroup and Wells Fargo
Citigroup posted net income of $5.25 billion, up 40%, on revenue of $23.85 billion, up 8%, with earnings per share of $2.85. Net interest income rose 14% to $17.0 billion and fixed-income trading revenue rose 4% to $4.4 billion. Higher card rewards and loan-loss provisions weighed on card profitability, and trading revenue declined from the prior quarter. The bank was reported to have raised its 2026 net interest income guidance excluding markets.
Wells Fargo, which has less exposure to trading, told a different story. Revenue of $21.87 billion was up 2% and missed estimates, while net income of $5.95 billion and earnings per share of $1.87 beat expectations. Net interest income rose 5% to $12.52 billion, average loans and deposits each grew 11%, and provisions for credit losses were higher. The bank guided to fourth-quarter net interest income of about $13 billion and roughly $50 billion for 2026. Chief Executive Charlie Scharf pointed to consumer spending, high employment and wage growth as supports, while flagging persistent inflation, elevated oil prices and higher rates as threats.
Reading the Numbers
A few themes stand out from the first batch of reports.
- Market-sensitive revenue is doing the heavy lifting. Equities trading revenue rose sharply at both Goldman Sachs and JPMorgan, and investment banking fees grew at Goldman Sachs and JPMorgan. Fixed-income trading was flat to lower at both firms.
- Net interest income is growing, but unevenly. JPMorgan, Citigroup and Wells Fargo each reported increases, while Goldman Sachs saw a small decline, a reminder that funding costs matter as much as asset yields.
- Credit commentary is cautious but not alarmed. Management teams described resilient consumers, yet the language around lending standards and borrower stress under higher rates was notable.
- Expectations were high. One market commentator quoted in coverage called the results a little disappointing for investors who had anticipated much better.
What Investors May Watch Next
Morgan Stanley reported on October 14, and other large financial companies follow in the coming days, giving a broader read on trading, wealth management and credit trends. The next questions are practical ones. Does trading revenue stay elevated if market volatility fades? Do net interest income forecasts hold if rates keep rising? And do provisions for credit losses continue to climb as higher borrowing costs work through the economy?
Analysts also remain divided on valuation. Koyfin data cited in one report showed an average 12-month price target for JPMorgan of $372.29, roughly 12% above the reported price at the time, with 12 Buy ratings and 12 Hold ratings among covering analysts. Such targets change often and are opinions, not predictions.
Bottom Line
The first big-bank reports of the season showed healthy dealmaking and trading activity, steady growth in net interest income and resilient consumer spending, paired with an earnings miss at the sector’s largest firm and persistent worry about rates. Investors comparing banks may find it useful to separate trading-driven revenue, which can swing quarter to quarter, from lending income and credit quality, which tend to change more slowly.
This article is for informational purposes only and is not investment advice. Figures are as reported on October 13-14, 2026, and may be revised. Consider consulting a licensed financial professional before making investment decisions.
Sources: Beinsure, Capital.com, Stocktwits.
